Due diligence
More categories
Due diligence investigates a target company in different business transactions, like mergers and acquisitions, IPOs, restructurings, and divestments.
While due diligence is often associated with acquiring companies investigating target companies in M&A deals, it may take other forms:
- Seller due diligence. It occurs when a seller prepares to be acquired in a merger or acquisition. The seller brings its business functions in order, eliminates accounting and compliance issues, and values its business against performance benchmarks.
- IPO due diligence. It occurs when investment banks investigate private companies that aim to go public. IPO due diligence evaluates the target company’s business functions against readiness for public markets.
Key due diligence terms
- Due diligence stream: A particular business area under investigation
- Financial due diligence: It investigates the target company’s financial health and determines its acquisition value.
- Operational due diligence: It investigates how the target company delivers profit-generating goods and services.
- Commercial due diligence: It investigates the competitive landscape, customer relations, and marketing strategies.
- Technology due diligence: Investigates IT infrastructures, systems, and software applications.
- Tax due diligence: Evaluates tax treatment and determines tax-related risks and opportunities.
- Legal due diligence: It reviews the target company’s contracts, agreements, and licenses.
- Compliance due diligence: Creates the target company’s compliance profile and maps compliance risks.
- Due diligence checklist: Outlines business functions, documents, and focus areas under investigation during due diligence.
- Non-disclosure agreement (NDA): Determines the scope and usage limitations for sensitive information shared in an M&A deal.
- Audit: It occurs when independent third parties (auditors) investigate the target company.
Navigating due diligence topics
Our due diligence blog encompasses the following topics:
- Due diligence best practices
- Functional due diligence checklists
- Guides to due diligence streams
- Due diligence risks and challenges
- Cybersecurity practices during due diligence
- And more
Our due diligence articles help DD professionals, M&A buyers and sellers, accountants, auditors, M&A professionals, investment bankers, and investors.
![Real estate due diligence checklist](https://data-rooms.org/wp-content/uploads/2024/08/Real-estate-due-diligence-checklist-1024x585.webp)
29 August 2024
Real Estate Due Diligence Checklist: A Comprehensive Guide for 2024
Due diligence has become more critical than ever in the 2024 real estate market. Thorough due diligence is crucial for...
![](https://data-rooms.org/wp-content/uploads/2024/05/iStock-1269457842-1-1024x683.jpg)
16 May 2024
Due diligence audit: Importance, steps, and tools for a smooth flow
A health check-up provides insights into a person’s overall health and identifies concerns. A due diligence audit uncovers critical information...
![IT due diligence, information technology diue diligence](https://data-rooms.org/wp-content/uploads/2024/05/iStock-1216081578-1-1024x683.jpg)
10 May 2024
IT due diligence checklist: Process and tips explained
As much as 74% of CEOs believe digital technology drives business growth, and over 80% of successful M&A deals emphasize...
![due diligence checklist](https://data-rooms.org/wp-content/uploads/2023/03/iStock-682631654-1024x683.jpg)
08 April 2024
A Complete Due Diligence Checklist: Template to Use in 2024
Whether you are a manager preparing for a merger or a finance professional seeking to enhance your knowledge, it is...
![due diligence software](https://data-rooms.org/wp-content/uploads/2024/03/iStock-1633896180-1024x432.jpg)
13 March 2024
Due diligence platform: best ways to solve challenges
In 2024, due diligence trends will be shaped by regulatory pressure, cross-functional efficiency, and AI integration. What it all comes...
![due diligence for startups](https://data-rooms.org/wp-content/uploads/2023/12/iStock-1481623699-1024x426.jpg)
05 December 2023
Due diligence for startups: checklist, common challenges, and their solutions
Statistically, about 20% of startups fail in the first year, 50% within five years, and 65% within 10 years. Key...
![m&a questions](https://data-rooms.org/wp-content/uploads/2023/09/iStock-1389510306-1024x713.jpg)
22 September 2023
60 M&A Questions to Ask During Integrated Due Diligence
The mergers and acquisitions industry has been stagnating for the past few years. Rising interest rates, geopolitical uncertainty, and global...